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Johnson & Johnson (JNJ) Increases Yet Falls Behind Market: What Investors Need to Know

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Johnson & Johnson (JNJ - Free Report) ended the recent trading session at $270.22, demonstrating a +1.1% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily gain of 1.14%. Meanwhile, the Dow gained 0.61%, and the Nasdaq, a tech-heavy index, added 1.69%.

Prior to today's trading, shares of the world's biggest maker of health care products had lost 2.24% lagged the Medical sector's loss of 0.26% and was narrower than the S&P 500's loss of 2.85%.

Analysts and investors alike will be keeping a close eye on the performance of Johnson & Johnson in its upcoming earnings disclosure. The company's earnings report is set to go public on October 13, 2026. It is anticipated that the company will report an EPS of $2.96, marking a 5.71% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $25.36 billion, up 5.71% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $11.61 per share and a revenue of $101.13 billion, demonstrating changes of +7.6% and +7.37%, respectively, from the preceding year.

Investors might also notice recent changes to analyst estimates for Johnson & Johnson. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been a 0.04% fall in the Zacks Consensus EPS estimate. Right now, Johnson & Johnson possesses a Zacks Rank of #3 (Hold).

From a valuation perspective, Johnson & Johnson is currently exchanging hands at a Forward P/E ratio of 23.05. This denotes a premium relative to the industry average Forward P/E of 15.67.

We can additionally observe that JNJ currently boasts a PEG ratio of 2.55. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 1.98 based on yesterday's closing prices.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 103, finds itself in the top 42% echelons of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow JNJ in the coming trading sessions, be sure to utilize Zacks.com.

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